- Gifts to Foreign Charitable Organizations
- April 3, 2012
- Law Firm: Miller Thomson LLP - Toronto Office
The Budget proposes changes to the process by which foreign organizations that have received a grant from the Government will be considered qualified donees under the Tax Act. Under the current rules, foreign charitable organizations become qualified donees as of a given time if they have received a gift from the Government within the 36 month period commencing 24 months prior to that time. This rule is an exception to the general rule that foreign organizations are not qualified donees and therefore cannot issue donation receipts or receive grants from Canadian registered charities.
The Budget proposes to modify the rules making some foreign charitable organizations temporary qualified donees. Foreign charitable organizations that receive a gift from the Government may apply for qualified donee status if they pursue activities:
related to disaster relief or urgent humanitarian aid; or
in the national interest of Canada.
The registration of these organizations as qualified donees is now discretionary, and will be granted for a 24-month period that begins on the date chosen by the Minister of National Revenue, which normally would be no later than the date of the gift from the Government.